What Mr Jobs did not say was that the reduction comes largely from a change in Apple's relations with mobile operators, such as AT&T in America. Operators will subsidise the new handsets to make this low price possible, but will also increase monthly usage fees—and will no longer pass a share of those fees to Apple.
This brings Apple in line with the business model used by other handset-makers, such as Nokia and Samsung.
Monday, June 16, 2008
Apple changes direction
Although in a great many ways Apple has blazed trails, both in products and in marketing, it's interesting to note that in one regard at least, they are belatedly following the industry standard. In discussing the latest iPhone and its reduced price, The Economist notes: